A property development body says the implementation of a previously delayed code in 2019 would increase housing diversity within the Illawarra.
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The Urban Development Institute of Australia represents the property development sector’s interests.
When reflecting on 2018, UDIA NSW’s Greater Western Sydney & Southern Region manager Keiran Thomas said Illawarra house price growth started to slow; “a welcome change for people looking to buy a home”.
“Unfortunately we also saw credit tighten, making it harder for both home buyers and developers to get finance,” he said.
Mr Thomas also said the UDIA was disappointed to see Illawarra councils defer the Low Rise Medium Density Housing Code, “at a time when more townhouses and terraces are desperately needed”.
The new code was due to come into effect on July 6.
The state government’s code would allow one and two-storey dual occupancies, manor houses and terraces to be carried out under a fast-track complying development approval.
A manor house is a two-storey building that contains three or four dwellings under one roof, designed to appear as a double storey house from the street.
Low rise medium density housing as complying development would only be allowed where medium density development is already permitted under a council’s Local Environmental Plan.
However, it was announced in July that following requests, the state government had deferred the code’s introduction for many councils until July 2019.
Councils with deferral included Wollongong, Shellharbour and Kiama.
Wollongong Lord Mayor Gordon Bradbery previously described the code as “medium density by stealth”.
Looking ahead to 2019, Mr Thomas said they were expecting the Low Rise Medium Density Housing Code “to finally start in the Illawarra to help increase housing diversity and get housing approved faster”.
Also, ahead of the State Election in March, the UDIA’s campaign is calling for no new taxes and charges on development until 2024.
“These taxes and charges are steadily increasing, squeezing developer margins and stopping projects from getting off the ground,” Mr Thomas said.
“If the housing market weakens, many housing projects will simply be shelved and it will be even harder to house the next generation.”
In November, the UDIA released its ‘Building Blocks’ report.
The report indicates that up to 12,000 home sites in the Illawarra/Shoalhaven could be delivered in the next three years with an injection of funding for key infrastructure items.